Question: The variable cost per unit for a proposed project is $8.48 and the annual fixed costs are $27,400. These costs can vary by 5 percent.Annual
The variable cost per unit for a proposed project is $8.48 and the annual fixed costs are $27,400. These costs can vary by ±5 percent. Annual depreciation is $13,290 and the tax rate is 21 percent. The selling price is $13.29 per unit, ±2 percent. If the company bases its sensitivity analysis on the expected outcome, what will be the operating cash flow for a sensitivity analysis of 9,200 units?
R. $14,066.02
B. $11,554.50
$22.078,40
D. $18,385.60
E. $16,103.98
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